ARCELOR et le transport ferroviaire

1. ARCELOR et le transport ferroviaire Le 30 novembre 2006

2. P. 2 PART DU TRAFIC FRET A L'INTERIEUR DE L'UECHIFFRES 2005 EN MILLIARDS DE T.K.

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4. P. 4 Arcelor : un acteur mondial Arcelor, a worldwide presence in its four activities: Flat Carbon Steel: semi-finished products (slabs)  and finished products (hot rolled, cold reduced, coated) Long Carbon Steel: semi-finished products (blooms) and finished products (sections, hot  rolled bar, cold finished bar, rebar, wire,� ) Arcelor, a worldwide presence in its four activities: Flat Carbon Steel: semi-finished products (slabs) and finished products (hot rolled, cold reduced, coated) Long Carbon Steel: semi-finished products (blooms) and finished products (sections, hot rolled bar, cold finished bar, rebar, wire,� )

5. P. 5 Arcelor : un acteur mondial Arcelor, a worldwide presence in its four activities: Stainless Steel: flat and long stainless products Distribution, Transformation and Trading activities Arcelor, a worldwide presence in its four activities: Stainless Steel: flat and long stainless products Distribution, Transformation and Trading activities

6. P. 6 ARCELOR: un partenaire important au niveau Europ�en

7. P. 7 ARCELOR: un partenaire important au niveau Europ�en

8. P. 8 The liberalization process has started and all the traditional players, following different strategies, have a common target: PROFITABILITY The liberalization process implemented in EU imposes a drastic restructuring on traditional railway companies: Limitation/elimination of overcapacities Lack of rolling stock: railcars. locomotives Lack of labour force: locomotive drivers New players. focused on point to point business. cannot compensate these weaknesses or have them as well (railcars and drivers) A new equilibrium appears and will remain at least until 2010. based on capacity sales instead of on a current �self tuned� offer

9. P. 9 These barriers are not only legal but due to complexity also technical

10. P. 10 The quality of infrastructure and track access are key barriers for AP Current quality of infrastructure (around plants inside and outside Arcelor) limits train weight and size The actual policy in favor of high speed tracks generates underinvestment of the traditional network 30% of the French network is close to obsolescence (audit report made by a Swiss company appointed by the French government) The length of the trains remains a strong barrier as it is variable by country and due to infrastructure The limitation at 22.5 t/axle instead of 25 t/axle penalizes loaders with high density products The non adapted industrial network inside Arcelor�s plants represents a barrier as the cannot manage 6 axle wagons, which penalizes the wagon capacity increase improvements made Track access Only railway companies are allowed to purchase slots Due to the complexity of the process and the priority given to passenger transportation. the slot purchasing process is very long: In some countries orders must be placed in April to obtain a slot in December Spot trains are inserted in movement graphics �where place is remaining� The track ownership remains generally in hands of public authority (even in UK where the network has been renationalized) Budget limitations reduce investments Obligation to being self sufficient Large risk of track cost increase (example in Netherlands: +40% in one year. Price increase of 50% is expected from RFF between 2006 and 2008)

11. P. 11 The market position of the different types of products offered by the transport mode reflects the complexity of negotiations The railway activity is split in three market segments but all of them are closely linked Not all suppliers are interested in being well positioned in all three market segments With the actual market organization. it is difficult to negotiate each part separately

12. P. 12 Perspectives ARCELOR souhaite l��mergence d�une concurrence globale, couvrant les flux industriels ET les flux diffus. Les deux syst�mes sont n�cessaires pour la sid�rurgie. Il ne s�agit pas de remplacer un monopole par un autre. Le mod�le explor� est celui des short liners: Un op�rateur dans chaque grand p�le �conomique assurant la distribution et la collecte des wagons ainsi que la formation des trains Des tractionnaires interpolaires

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